While Offshore Software Outsourcing market continues to grow in China, some of recent events highlight concerns over industry. A recent research work says Software Development Outsourcing services market of China has reached 324 dollar million in the 1st quarter of year 2006, which has jumped near about 45 per cent as compared to the 1st quarter of year 2005. But, as in most nations where Offshore Software Outsourcing is conducted, there is concern over security as one of the largest issues for clients. We could say that India is far the biggest destination for Offshore Outsourcing job work, has had some share of concerns, and with the ongoing programs & development plans to try to happen those issues.
With the recent global analysis, Japan is the largest market for contracting to China in Offshore Software Outsourcing that accounting for 60 per cent of the nation’s software outsourcing market. America and Europe holds 23 percent share of market. This nation’s leading outsourcing outfit organization by market share is Hisoft, SinoCom and Neusoft. With the consideration of the fast pace for outsourcing market growth in today’s words, it is no surprise that Siemens, HP, IBM, Microsoft, Unisys, EDS- Electronic Data Systems and others are all adding some staff in China. Even with this India’s outsourcing giant companies like Tata, Infosys and WiPro have also presence in the nation.
Regarding to problem for security while outsourcing related work China has not that much concern. The American government sent a signal that’s clearly indication the underlying concerns, which might influence the outsourcing market of China. The American government said it does not trust one of China’s largest manufacturers company, Lenovo, as the department of American State said it would not use Lenovo computers on the basis of classified network due to ongoing concerns about the organization’s ties with Chinese government. The decision of State Department comes after objected to the use of Lenovo’s computers in some of classified network that connects American embassies & consulates.
Offshore Software Outsourcing wrok from China
So during the month of March, the American State Department announced their plans to purchase more than 16,000 computers from Lenovo and some of equipment related to it with the deal of 13 million dollars through the contract of government. While the computers would still be used, it will not play the role in any sensitive networks of government. But one has to wonder if this Software development will give pause to American organization to consider Offshore Software Outsourcing work from China.
Obviously one should care about the implications of security during Offshore Software Outsourcing work with the third party, especially organization that works from offshore offices where the concerned over laws and intellectual property, privacy might be looser. But beyond that, China shouldn’t be singled out as being particularly dangerous. Even Russia and China will likely become dangerous players in global market for India in the Offshore Outsourcing market.